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How Much Does Flood Insurance Cost? A Complete Guide

Flooding accounts for over 100 fatalities and billions of dollars in property damage every year in the United States annually. If you live in an area affected by flooding, you may be wondering, “How much does flood insurance cost?” That can be difficult to estimate since it is based on several factors.

The good news is that there are only a few major considerations to make when looking for home flood insurance. The guide below will tell you what to look for and how you can find the right policy for your home or business.

Flood Insurance Coverage

Nationwide, about 90 percent of occupied homes have homeowners insurance. But only 12 percent have a flood insurance policy (and homeowners insurance policies usually don’t cover floods).

Louisiana is by far the most covered state, with over 40 percent of its residents with a policy. Florida is a distant second at around 31 percent.

How Much Does Flood Insurance Cost?

The national average monthly flood insurance premium is around $700. But monthly premiums can vary as much as $1,000 from state to state. The three main things to look at when determining “How much does flood insurance cost?” are location, condition of your home, and level of coverage.


The average flood insurance cost will range from over $1,500 a month in states like Vermont and Connecticut to around $500 in Florida, Maryland, and Louisiana. It is important to remember that this is only an average.

Vermont premiums may be higher across the board, but most people do not live in flood zones. Likewise, while most of Louisiana is free from the dangers of flooding, areas like New Orleans can experience catastrophic flooding.

A good rule of thumb is that people who live in coastal areas will pay more for coverage. The same is true for flood plains, although premiums will be based on how severe and frequent floods are in the area.

Home Age and Build

The other major factor that impacts the average residential flood insurance cost is the age and condition of your home. Older ones built before the availability of modern construction techniques and materials are more susceptible to damage from floods. They also may be more difficult to restore after damage.

Modern building techniques also can help mitigate the effects of flooding. Examples are floor openings and drainage systems. These technologies can contribute to lower premiums when buying flood insurance.

Level of Coverage

Like other types of insurance, the extent of your policy and the deductible will have an impact on the cost. In general, the higher the coverage and lower the deductible, the more you will pay in premiums.

Depending on where you live, you may qualify for the National Flood Insurance Program. This is a federal initiative that helps provide flood insurance to individuals and businesses in flood-prone areas. Even if you live in a low flood area, it may help you buy a private policy at a lower rate.

It’s important to consult a reputable insurance agency to determine the appropriate level of coverage based on your risk and budget. Also, you can search online for a flood insurance quote, to get a better idea of what you will pay in premiums.

Learn More About Flood Insurance Prices

Now that you have some ideas for answering “How much does flood insurance cost?” you can begin looking for coverage. It is important to find a policy that adequately protects your home and everything in it but is within your budget.

We hope you found this information on flood insurance helpful. If so, be sure to take a look at some of our other home and lifestyle posts, as well as those on travel, business, and many other topics.

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